The Shyft Group Reports $204.6 Million Revenue in Q1 2025, Net Loss Improves

The Shyft Group, Inc. reported a consolidated revenue of $204.6 million for the first quarter of 2025, reflecting a 3.4% increase from $197.9 million in the same period of 2024. The company achieved a gross profit of $40.3 million, up 18.3% from $34.1 million year-over-year, resulting in a gross margin of 19.7%, compared to 17.2% in the prior year. Operating expenses rose to $38.6 million, or 18.8% of sales, from $36.0 million, or 18.2% of sales, in the previous year. The company reported an operating income of $1.7 million, a significant improvement from an operating loss of $1.9 million in the first quarter of 2024. Despite these gains, Shyft recorded a net loss of $1.4 million, an improvement from a net loss of $4.7 million in the prior year, with diluted loss per share decreasing from $0.14 to $0.04.

The company’s financial performance was bolstered by increased sales of its Blue Arc electric vehicle (EV) solutions, although this was partially offset by lower sales volumes in its Specialty Vehicles (SV) segment and reduced pass-through chassis sales in its Fleet Vehicles and Services (FVS) segment. The cost of products sold increased slightly to $164.3 million, driven by higher volumes and the impact of the ITU acquisition, which was completed in July 2024. The company’s order backlog decreased to $335.3 million as of March 31, 2025, down 23.7% from $439.4 million a year earlier, primarily due to reduced demand in the delivery van market.

Strategically, Shyft Group has focused on expanding its capabilities through acquisitions and product innovations. The acquisition of Independent Truck Upfitters (ITU) for $49.9 million is expected to enhance its service body product offerings and upfit capabilities. Additionally, the company has introduced the Blue Arc Class 4 all-electric truck, which is now in production and aims to meet the growing demand for zero-emission vehicles. The company also deployed a Rapid Driver Cooling System in 5,860 walk-in vans, showcasing its commitment to innovation in vehicle design.

Operationally, Shyft Group's employee headcount has increased due to the ITU acquisition, contributing to higher selling, general, and administrative expenses. The company continues to monitor macroeconomic trends, including inflation and supply chain challenges, which may impact future profitability. Looking ahead, Shyft Group remains optimistic about its long-term growth prospects, particularly in the EV market and through strategic acquisitions, while also navigating the complexities of market conditions and customer demand.